SG: MARKET PULSE: Mapletree Logistics Trust, Raffles Medical Group (25 Mar 2013)

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.25

Stock Name: RafflesMG
Company Name: RAFFLES MEDICAL GROUP LTD

Research House: OCBC

Price Call: HOLD

Target Price: 3.01

MARKET PULSE: Mapletree Logistics Trust, Raffles Medical Group

25 Mar 2013

KEY IDEA Mapletree Logistics Trust: Second disposal attempt Summary: Mapletree Logistics Trust (MLT) announced last Friday that it has entered into an option to purchase agreement for the divestment of 30 Woodlands Loop in Singapore at a sale price of S$15.5m. This represents a significant premium to its purchase price of S$10.3m in 2007 and its valuation price of S$11.0m in Mar 2012. The divestment is expected to be completed by May, and is expected to generate a net disposal gain of ~S$5.0m, which will be distributed to unitholders (subject to clarification on tax treatment). We re-jig our forecasts to take into account the divestment and the potential distribution of the net disposal gains in FY14. However, our fair value remains unchanged at S$1.25. We maintain our BUY rating on MLT. (Kevin Tan) MORE REPORTS Raffles Medical Group: What's next after another setback? Summary: Raffles Medical Group (RMG) announced last Friday that its resubmission for the change of use of its commercial podium at 30 Bideford Road to a medical centre had been unsuccessful. This is the second setback faced by RMG in as many weeks as it had only recently lost out on a land tender for the development of a private hospital in Hong Kong. Management could now possibly seek to sell the property, retain it for rental purposes, or keep it for partial use and partial rental. Meanwhile, we expect RMG to continue to grow its Singapore business and to step up its negotiation efforts with regards to its recent non-binding Letter of Intent for a proposed integrated international hospital development in Shenzhen, China. Maintain HOLD on RMG, with an unchanged fair value estimate of S$3.01. (Wong Teck Ching Andy)

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